INNOVATION IN BUSINESS ENTREPRENEURSHIP MANUAL

MANUAL INNOVACIÓN EN EL EMPRENDIMIENTO EMPRESARIAL

3. DESIGN AND ELABORATION OF A BUSINESS PLAN

Once we have validated the business model, we also have to draw up a Business Plan. "If you don't make a plan, your plan could fail.

If you want your business to continue to exist over the years, you need to start thinking about and planning for its future. One of the shortcomings of small businesses is that their activities are not properly planned. Lack of planning is a dangerous cost factor that can cause a business to fail by wasting money, time and opportunities.

A business plan is a formal statement of a set of business objectives, which is a projection and evaluation phase. It is used internally by management for planning tasks, and assesses the need to approach banks or potential investors to provide funding for the business. The business plan can be a business representation of the model to be followed. It brings together the verbal and graphical information of what the business is or will become. It is also considered a synthesis of how a business owner, manager, or entrepreneur will attempt to organise an entrepreneurial endeavour and carry out the necessary and sufficient activities to make it successful. The plan is a written explanation of the business model of the company to be launched. Business plans often become obsolete, so a common practice is to constantly renew and update them. A common belief within business circles is that the true value of the plan is underestimated, yet it is believed that the most important thing is the planning process, through which the manager gains a better understanding of the business and the options available. The preparation of a Business Plan has two specific objectives: Internal and External. • Internal as a guide for business planning. It serves as a guide to the degree of development and execution of the company's business activity. • External as an instrument of dialogue with the agents of the ecosystem, especially if funding is to be sought. The Business Plan is also intended to be the letter of introduction of the entrepreneurs and the project to third parties.

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European Open Business School